Saudi derivatives market, index futures launch set for Aug 30
RIYADH, July 14, 2020
Saudi Stock Exchange (Tadawul) has announced plans to launch its exchange-traded derivatives on August 30.
The first exchange-traded derivatives product is an index futures contract, the Saudi Futures 30 (SF30). This contract is based on the MSCI Tadawul 30 Index (MT30).
The MSCI Tadawul 30 Index was launched by Tadawul and MSCI and went live on January 30, 2019. The MT30 Index is derived from the broader MSCI Saudi Arabia Index and is designed to reflect the performance of the approximately 30 largest and most liquid stocks listed on Tadawul based on free float capitalization.
On the derivatives market and index futures launch, Tadawul said it aims to further support the growth of the the kingdom's capital market by creating new opportunities for investors, providing them with hedging tools to manage risk, and expand exposure opportunities to one of the largest and most liquid markets in the world – the Saudi Market.
As the market develops, Tadawul has plans to roll out more derivatives products such as Single Stock Futures, Single Stock Options, and Index Options, said a top official.
"Today, we can proudly say that our capital market is not only the largest in the region but also developing faster than most exchanges in terms of both the products and the services we offer," remarked its CEO Khalid Al Hussan.
"The introduction of derivatives trading is further evidence of our commitment to providing our investors with diversified, innovative products and services to meet all their needs," stated Al Hussan.
The launch of the Derivatives Market in Saudi Arabia as one of the Financial Sector Development Program (FSDP) initiatives under the Saudi Vision 2030 is a significant step in introducing sophisticated market products and creating a trading environment attractive to local as well as international hedgers and traders, he added.-TradeArabia News Service
